Rocket Companies stock soars 70% on speculative trading, mirroring GameStop rally
Susan Tompor | Detroit Free Press | March 3rd, 2021
Sam Huszczo, a chartered financial analyst in Southfield, said he, too, sees the Rocket takeoff as eerily similar to the GameStop situation.
“Rocket is a highly shorted stock that is more ripe for the short squeeze strategy that the GameStop situation popularized,” he said. “And there has been some unusual options activity today with three times higher Call Option volume than normal.”
“At this point,” Huszczo said, “it’s too early to tell if this was generated by retail traders like Reddit board users.”
While Rocket had a decent earnings quarter, he said, that alone wouldn’t justify the stock’s bullish rise. And there is at least one amusing irony here in this story.
“WallStreetsBets users love to use rocket ship emojis to signify stocks that they are targeting, which seems like a good fit for Rocket Mortgages,” Huszczo said.